On Thursday, the Labor Department announced that inflation rose 7.5% compared with a year ago and is the highest it has been since 1982. Consumer prices also rose sharply, according to CNBC. One expert told the financial news outlet that economic conditions are unlikely to get better anytime soon:
That combination of higher food and housing prices “underlines our view that a rapid cyclical acceleration in inflation is underway and, with labor market conditions exceptionally tight, it is unlikely to abate any time soon,” wrote Andrew Hunter, senior U.S. economist at Capital Economics.
“While we still expect more favorable base effects and a partial easing of supply shortages to push core inflation lower this year, this suggests it will remain well above the Fed’s target for some time,” he added.